2014 infusionsoft small business owner attitudinal ... · small business owner attitudinal...

2014 Infusionsoft Small Business Owner Attitudinal Segmentation Research ReportRESEARCH CONDUCTED BY AUDIENCE AUDIT, INC.™

AU G U S T 2 0 1 4

2 Small Business Owner Attitudinal Segmentation Report Infusionsoft.com

A different approachMany research studies about the small business market

focus on the demographic characteristics of businesses or

their owners – place of work or residence, industry, gender,

age, business size, income, etc.

Our own experience with over 23,000 entrepreneurs led us

to question the notion that small business owners can be

understood by demographics alone. We work with entrepre-

neurs across a wide range of industries, ages and income

levels, and often see similar issues regardless of these factors.

Our research sought to gain a deeper understanding of

these owners’ attitudes, goals and challenges. Combining

this exercise with demographic data would, we hoped, allow

us to develop a more lifelike portrait of our ideal customers.

We hope that the findings in this report will allow us to do

two things: First, to develop a more effective and valuable

product for our customers, and; Second, to create content

that is more relevant and valuable to the wider small business

market we aim to serve.

IntroductionIn early 2014, Infusionsoft embarked on an ambitious effort to better understand the needs, motivations and perspectives of small business owners. We wanted to better understand the customers we already serve, and gain insight into how we could best serve the larger community of small business owners.

http://www.infusionsoft.com


RespondentsWe worked with Audience Audit™, a research company dedicated to attitudinal segmentation research for marketers. Their

approach would allow us to understand the key shared perspectives and differences in attitude that shape the community of

small business owners who participated in our study.

Because we wanted to hear not only from Infusionsoft customers but also from other small business owners, we sought respondents

both from our customer list as well as from a professionally managed research panel of small business owners from across the

U.S. The panel respondents own businesses employing 25 employees or fewer, are geographically distributed across the country

approximating the most recent census distribution, and have never used Infusionsoft. It was also controlled to achieve a roughly

even split between service- and non-service businesses.

Our study collected responses from 408 Infusionsoft customers and 429 panel participants. The study did not seek to profile

a nationally representative sample, so some characteristics may not match those of such a sample.

Fig. 3

Age

Under 34 years old

34 - 49 years old

50 years old or over

Non-Infusionsoft respondents were more likely to be 50 or over (57%)

Fig. 4

Education

Have a college degree

Do not have a college degree

Among Infusionsoft respondents, 55% have a college degree

Fig. 1

Customer Type

B2C

B2B

B2C and B2B

Fig. 2

Gender

Female

Male

Did not say

41%

13%

46%

68%

32%

50%

22%

28%

45%54%

1%IN TOTAL, OUR RESPONDENT

GROUP HAD THE FOLLOWING

CHARACTERISTICS:



Study MethodologyRespondents were invited to take an anonymous 15-minute online survey exploring their feelings about small business ownership,

goals and challenges, resources, demographics and more.

The segmentation itself was developed using a factor analysis of responses to a series of attitudinal questions that participants

were asked to rate from “Disagree 100%” to “Agree 100%”. The segmentation analysis did not include demographics or any

other information about respondents beyond their ratings on these attitudinal items. Neither the identifying characteristics of

segments, nor the number of segments, were predetermined; segments, their characteristics and their members were revealed

through the analysis.

Once segments were established and assigned to each respondent, additional characteristics were compared across segments.

The total number of respondents to the survey yielded a 3.3% margin of error with a 95% confidence level.

ConsiderationsBecause the survey was not conducted using a nationally-normed sample of small business owners, its findings should not be

construed to depict the characteristics of such a sample. The large group of Infusionsoft customers in the survey undoubtedly

colors its results with regard to marketing activities, digital acumen and more.

However, we believe it does shed light on both our customers and many other small business owners who own businesses

of a similar size.

General FindingsThe following items were ranked by all survey respondents. “1” represents the highest-ranked items overall, with the others

following in order of average rating.

TOP GOALS:

1. Living the life I want

2. Doing the work I love

3. Building a profitable business

4. Making a positive impact for my customers

MAIN CHALLENGES:

1. Lack of time to get everything done

2. Managing everything myself

3. Lack of money to invest in my ideas

MOST HELPFUL INFORMATION FOR RUNNING

THEIR BUSINESS:

1. How to attract more customers

2. Getting customers to refer their friends

3. Using social media effectively

MOST EFFECTIVE SALES AND MARKETING ACTIVITIES:

1. Customer referrals and word of mouth

2. Emails to their own lists

3. Networking

4. Social media

MOST VALUABLE RESOURCES FOR RUNNING

THEIR BUSINESS:

1. Business people they know personally

2. Seminars and workshops

3. Industry experts they follow online



Attitudinal Audience SegmentsThe most striking result of the research was the clear delineation between attitudes among the respondents. The segmentation

analysis revealed a truth that every provider to small business owners surely understands instinctively – they’re not all alike. We

found dramatic differences in how entrepreneurs think about their businesses, why they take on the significant risks involved,

and the goals that are most important to them.

23% 25%

28%24%

StrugglingSurvivors

LegacyBuilders

PassionateCreators

FreedomSeekers


Passionate CreatorsThe small business owners who make up the first profile, “Passionate

Creators”, started their business because they love what they do.

For passion-driven entrepreneurs, running a business gives them an

opportunity to serve the customers they want to serve in precisely

the way that they want, and they take great pride in doing so. When

asked about their goals, “Doing the work I love” was an overwhelmingly

favored answer for this group.


Passionate CreatorsA rosy outlook48% of this group says that they always knew they would run their own business.

These owners, far more than any other group, feel that passion is one of the most

important qualities for a successful small business owner. They are dramatically

more optimistic than other segments, with 50% saying they are “very optimistic”

about the prospects for their business over the next five years. They are the most

likely to consider themselves true “entrepreneurs”, and are also the most likely to

consider a wide range of other business owners entrepreneurs as well.

Giving backThese respondents also have a deep charitable streak. 53% of them say that helping

other business owners be successful is an extremely important goal for them.

35% say they regularly mentor other entrepreneurs and 22% regularly speak to

audiences about small business ownership. 47% donate funds to charitable

organizations in their communities. [Fig. 5]

Time is moneyThis segment is the most time-stressed of the four. Perhaps to address this issue,

they are the most likely to use a wide range of business tools, from accounting

software to CRM and automated marketing programs. They are also the most

likely to tap into a wide range of resources to help them operate their business –

from entrepreneurship training, to mentors and coaches, to seminars, workshops

and industry experts. They are clearly hungry for information that will allow them

to grow their business and better serve their customers.

This segment is most likely to have five or more employees (31%), to work in an

office (43%) and to have businesses that have generated more than $100,000 in

gross income in 2013 (54%). They are also most likely to say they will generate

“much higher” revenue in 2014 (30%).

Passionate Creators are significantly more likely to spend at least $500 per

month on marketing efforts (46%). They are most likely to use social media for

their business, email to their own lists, and to use analytics to support decisions.

Passionate Creators love their work and started their business so they could serve their customers.

73% Most likely to consider

themselves “definitely”

entrepreneurs

31% Most likely to have 5 or

more employees

43% Most likely to work in an office

54% Most likely to have gross

revenue over $100,000 in

2013. 14% generated revenue

over $1 million

30% Most likely to say they will

generate “much higher”

revenue in 2014

34% Most likely to outsource website

and content management

70% Most likely to use analytics to

support decision-making

47% Most likely to donate funds

to charitable organizations in

their community

1st Most likely to spend at least

$500 per month on marketing

activities admin tasks

Fig. 5

Charitable Activities

Help other business owners be successful

Regularly mentor others

Regularly speak to audiences about small business

Donate funds to charitable organizations in their community

0 10 20 30 40 50 60

53%

35%

22%

47%


Freedom SeekersMembers of the “Freedom Seekers” segment value having the ability to

control their own schedule, career path and the environment in which they

work. When asked about their goals, these owners were more likely to give

top ratings to “Being in control”, “Flexibility in my schedule to spend time

with my family” “Flexibility in my schedule to travel”, “Choosing my own

customers”, and “Living the life I want”.


Freedom SeekersFreedom Seekers are focused on having the flexibility to do more of what they

love. These owners are the least likely to say they’ll go back to a traditional job –

56% say they will “absolutely not” work for someone else in a corporate setting

in the future. They strive to keep things small and manageable — 45% of these

owners are the only employees in their business, and Freedom owners are the least

likely to have more than one other employee (32%).

Time-Focused Tech-UsersFor these owners, improving their lifestyle was

an important reason for starting their business,

and they are much more likely than other

segments to cite “Reducing the amount of time

I have to work” as a key goal. Correspondingly,

they cite “Time to get everything done” as their

biggest challenge. Like Passionate Creators,

these entrepreneurs turn to a variety of software

tools and automated support systems to run and

promote their businesses. They are more likely

than many owners to be using bookkeeping

or accounting software (57%), email marketing

automation (61%), and e-commerce, order and

payment processing (47%), CRM (46%), email autoresponder (44%) and contact

management (38%).

In control of their own successFor Freedom Seekers, owning a small business allows them to live the lifestyle

they’ve always wanted working where and when they want and doing what they

want. The vast majority of this profile (81%) works from home. 59% of the business

owners in the Freedom Seekers segment are women and 41% are men. [Fig. 6]

Being in control of their business offers them the flexibility that many were unable

to achieve working in a corporate environment. [Fig. 7] This profile is also most

likely to work in business coaching or consulting (29%), perhaps taking what they

learned in corporate and making it their own.

Like Passionate Creators, Freedom Seekers are very optimistic about prospects for

their business success over the next five years. 63% project their company’s gross

revenue in 2014 to be much higher or somewhat higher than last year. [Appendix B]

Fig. 6

Gender

Women

Men

59%

41%

7

6

5

4

3

2

1To be in control of

your careerTo get out of a corporate job

6.56.1

5.8 5.6

4.94.5

4.03.8

Fig. 7

Reasons for starting your own business

Freedom Seekers

Passionate Creators

Struggling Survivors

Legacy Builders

Freedom Seekers started their businesses to control their own fates, specifically regarding decisions, work environment, schedule and revenue.

65% Consider themselves

entrepreneurs

56% Say they will “absolutley not”

work for somebody else in the

future, making them the least

likely to believe they may work

for someone else in a corpo-

rate setting in the future

81% Work at home—the most likely

of the four segments to do so

29% Most likely to provide business

coaching or consulting

23% Most likely to have one

employee

68% Resist new software due

to cost

78% Have a website, and 55%

have responsive website

80% Most likely to be satisfied with

their website


Legacy BuildersBusiness owners in the “Legacy Builders” segment are more likely to have

started their business with a family member (24%) and see small business

as a practical economic choice. They are by far the most likely to feel that

most people would start their own business if they could, and to believe

that small businesses are more ethical than larger organizations.


Legacy BuildersAmong these owners, contributing to the economy is a chief motivator for owning

their own business. Offering something unique and building something to hand

down to their children are other powerful motivators for this group.

In it for the long runLegacy Builders are the least likely of the four segments to have earned a college

and/or post-graduate degree. Business ownership provides them with a sense of

stability for their future and the future of their families. They wanted to create a

business to help secure their retirement or to provide stability—something to hand

down to their children. For these reasons, many of them take tremendous pride in

the businesses they’ve created and are in it for the long haul. They are most likely

of the four profiles to run only one business (80%) and least likely to have consid-

ered closing (26%) or selling (24%) their business.

Technology-challenged In their approach to tackling business issues,

Legacy Builders are more likely to turn to family,

friends and coworkers for guidance. They rely

less on data to make their business decisions

and are least likely to adopt technology and seek

automation within their business—they prefer to

trust their intuition and traditional processes and

marketing tactics.

Of the four profiles, Legacy Builders are least

likely to have a website (45%). [Appendix A]

Even those that do have a site are less likely to

use CRM, payment processing, and other tools

to run their business, or to use email, content

marketing, SEO, PPC or marketing automation

to generate leads. It may be that they are overwhelmed or unsure of how software

and automation can play a role in their business operations considering forty

percent (40%) stated “figuring out which software can improve my business” as

a key area of difficulty.

55%

1%

44%

Fig. 8

Gender

Women

Men

Preferred not to say

Legacy Builders are motivated by the idea of building something to hand down to their children.

52% About half consider themselves

entrepreneurs

80% Most likely to own only

one business

45% Most likely to have less than

50K in revenue or not know

revenue, and least likely to

have revenue over 1M

29% Most likely to have only a

single interaction with a

customer between first

contact and service fulfillment

13% Say they don’t engage in any

marketing activities at all

33% Least likely to track website

analytics and online marketing

performance (27%)

29% Most likely to say they never

use analytics to make decisions

about business

49% Spend between $0 and $200

on marketing/month

45% Do not have a website, making

them the least likely of the four

profiles to have an online pres-

ence in the form of a website.

[Appendix A]

40% Identified “Figuring out which

software can help improve my

business” as an area of difficulty


Struggling SurvivorsThe “Struggling Survivors” small business owner profile embodies the

cold, hard reality that sometimes running a small business is scary—

even more so than it is rewarding. Struggling Survivors are the most

likely to have considered closing their business (53%).


Struggling Survivors Regardless of business model, tenure or experience, few small businesses are

immune to the fear of failure. That fear is rooted in the very real challenges that

small businesses face every day. Struggling Survivors said they have significant

concerns, misgivings and skepticism about the value of owning a small business.

60% agree strongly that “You have to be a little crazy to start a business” and

40% that “Corporate jobs are more secure than starting your own business” –

significantly more than other segments. [Fig. 9]

Struggles with time managementTime is the top challenge for every profile, but more than any other profile the

Struggling Survivors struggle with managing the operations of their businesses.

51% of them are the only employees in their business, and are spread thin managing

on their own a task list that includes administrative duties, sales, marketing and

advertising activities, customer service, financial tasks, managing vendors and

website content, and performing IT/technology duties. “Time to get everything

done”, “Managing everything myself” and “Staying focused on my goals” are

key challenges for this group.

Little financial securityStruggling Survivors are the least likely to report achieving many of the typical benefits

associated with owning your own business. Only 16% say the financial security of

their family is much better than it would be if they had a traditional job, and 38%

say it’s the same or worse. Fewer than 40% report dramatic improvements in the

time they can spend with family and friends.

They are also least optimistic about the prospects for their future success – only

20% say they are very optimistic about the success of their business over the next

5 years, compared to 50% of the Passionate Creators.

Going it aloneThis group is most likely to feel a lack of respect for business owners from those

around them. They are the least likely of the four profiles to say that the impact of

owning a small business is much better for their family and/or friends than if they

had a traditional job. Along with the Freedom Seekers group, they are least likely

to seek business guidance from family and friends. Yet, even with their sense of

lack of support from those around them, their never-ending to-do lists and the

uncertainty they feel about owning and running a small business, they are most

likely to volunteer in their community (34%).

Corporate jobs are more secure than starting your

own business

You have to be a little crazy to start a small

business

Fig. 9

Sentiment about the statements relating to starting your own business

Freedom Seekers

Passionate Creators


Legacy Builders

The Struggling Survivors segment expressed significant concerns, misgivings and skepticism about the value of owning a business.

50% Consider themselves

entrepreneurs

75% Have a website

[Appendix A]

53% Most likely to have considered

closing their business

51% Most likely to be

solopreneur

13% Most likely to be pessimistic

about the 5 year prospects for

their business based on their

personal definition of success

[Appendix B]

34% Along with Passionate Creators,

they are the most likely to

volunteer in their communities

1st Most likely to feel that their

small business negatively

impacts financial security for

their family more than if they

held a traditional job

1st Most likely to be doing the vast

majority of business activities

on their own7

6

5

4

3

2

1

3.73.2

5.1

4.3 4.2

4.9

5.6

3.7



ConclusionOur research demonstrates that small business owners have very different reasons for starting their businesses, very different

goals they want to achieve, and very different experiences of being an entrepreneur. These differences transcend demographic

profiles, business categories and revenue levels – a striking reminder that focusing on these more simplistic views can

mask the true story of motivation, goals and struggles among small business owners.

While there is surely no single “right way” to run a business, it’s clear that those owners who are passionate about fulfilling a

need for their customers report higher levels of optimism, revenue and benefit as a result of entrepreneurship – suggesting

that navigating the many challenges of small business ownership can be more rewarding for those who have embraced the

needs of their market and feel a strong drive to address those needs.

The research also demonstrates that entrepreneurs, whether they feel successful or not, need a wide range of support systems,

tools and resources to tackle the myriad challenges and responsibilities involved. And who’s to say that with the right support, even

the most frustrated Struggling Survivor couldn’t become a deeply satisfied, successful and optimistic Passionate Creator?

What does small business ownership mean for you?Using the insights gleaned from our survey and analysis of the four profiles of the modern small business owner, Infusionsoft

will develop products and services that truly meet the needs of our target customers – regardless of the challenges they face.

Ultimately our goal is to provide valuable information that connects with small business owners as people—not simply demographic

statistics. Our hope is that these compelling psychographic insights will help you achieve the same.

For more information about sales and marketing automation software for small business, or if you’d like to learn how you can

get organized, grow sales, and save time in your small business, visit infusionsoft.com.




LegacyBuilders

51%36%

8%5%

Appendix

1009080706050403020100

PassionateCreators

Passionate Creators

Freedom Seekers


Legacy Builders

83

17

FreedomSeekers

78

22

StrugglingSurvivors

75

25

LegacyBuilders

55

45

All GroupAverage

72

28

Appendix A

Does your primary company have a website?

Yes

No

Appendix B

How optimistic do you feel about the prospects for your business success over the next 5 years?

Very optimistic

Fairly optimistic

Somewhat optimistic

Neutral

Somewhat pessimistic

Fairly pessimistic

Very pessimistic

Appendix C

What do you expect your company’s gross revenue to be in 2014 relative to last year?

Higher to much higher

About the same

Lower to much lower

Not sure

0 10 20 30 40 50 60 70 80 90 100

PassionateCreators

71%

21%

5%

3%

StrugglingSurvivors

55%30%

14%FreedomSeekers

63%29%

7%

1%


2014 infusionsoft small business owner attitudinal ... · small business owner attitudinal...

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